Yreka Union Elementary School District Report

Yreka Union Elementary School District Transportation Review February 12, 2013 Joel D. Montero Chief Executive Officer Fiscal crisis & ManageMent assistance teaM February 12, 2013 David Parsons, Superintendent Yreka Union Elementary School District 309 Jackson Street Yreka, CA 96097 Dear Superintendent Parsons: In April 2012, Yreka Union Elementary School District and the Fiscal Crisis and Management Assistance Team (FCMAT) entered into an agreement to provide a review of the district’s transporta- tion programs and services. Specifically, the agreement states that FCMAT will perform the following: 1. Conduct a review of the transportation costs utilizing two years of audited finan- cial statements and the 2011-12 fiscal year budget for costs to pay the current service provider for transportation services. The objective is to determine district trends for revenues and expenditures and make recommendations to provide cost comparisons to determine the cost effectiveness and financial feasibility of the district operating its own transportation department. a. Provide budget assumptions for 2012-13 fiscal year b. Develop the proposed operating revenues and expenditures as a percent of the total budget c. Revenue line item explanations d. Operating expenditures e. Expenditure line item explanations f. Sources and uses of funds g. Debt obligations if leases are proposed for the purchase of buses h. Operating improvements i. Capital improvements j. Capital contingency fund k. Capital asset distribution FCMAT Joel D. Montero, Chief Executive Officer . . 1300 17th Street - CITY CENTRE, Bakersfield, CA 93 . 301-4533 Telephone 661-6 . 36-4611 Fax 661-63 . 6-4647 422 Petaluma Blvd North, Suite. C, Petaluma, CA 94952 Telephone: 707-775-2850 Fax: 707-775-2854 www.fcmat.org Administrative Agent: Christine L. Frazier - Office of Kern County Superintendent of Schools l. Interagency transfer of funds 2. Provide recommendations for appropriate staffing levels and the organization structure for the proposed transportation department using comparative school districts. Comparisons should be made to six school district departmental opera- tions of similar size and structure regarding productivity and efficiency models and shall include the following components: a. Personnel summary by district position b. Review job descriptions c. Review customer service records or logs d. Review support training by position 3. Review specifically the operations of transportation services which shall include the following: operations, routing, and scheduling and made recommendations to develop the department’s operational requirements for home-to-school trans- portation. a. Review and provide student demographic data b. Review records from the district’s service provider and develop the average weekly ridership by site, resource and district and forecast summary c. Develop routing methodologies including the use of automated routing software d. Propose the number of routes including board policies regarding walking distances e. Review the bell schedules and school start times f. Provide sample vehicle maintenance and inspection report requirements g. Propose bus loading and student counts h. Review the school bus inventory, if any; school bus procurement schedule; and equipment availability i. Review equipment and driver requirements for field trips j. Provide customer service or complaint logs k. Review the IEP process for student transportation l. Review board policies, administrative regulations and past practices regarding open enrollment policies for busing students, if any. 4. Provide a fiscal summary of the current transportation providers cost versus the proposed cost for the district to operate its own transportation department. This final report contains the study team’s findings and recommendations. FCMAT appreciates the opportunity to serve the Yreka Union Elementary School Distrct and extends thanks to all the staff for their assistance during fieldwork. Sincerely, Joel D. Montero Chief Executive Officer i TABLE OF CONTENTS Table of Contents About FCMAT .........................................................................................iii Introduction ............................................................................................1 Background ......................................................................................................1 Study Guidelines ............................................................................................1 Study Team.......................................................................................................2 Executive Summary ..............................................................................3 Findings and Recommendations .....................................................5 Financial Analysis ..........................................................................................5 Safety and Legal Compliance ....................................................................9 Contract Analysis ..........................................................................................11 Comparison with Other School Districts ..............................................17 Transportation Service Options ..............................................................21 Appendices ......................................................................................27 Yreka Union elementarY School DiStrict ii Fiscal crisis & ManageMent assistance teaM iii ABOUT FCMAT About FCMAT FCMAT’s primary mission is to assist California’s local K-14 educational agencies to identify, prevent, and resolve financial and data management challenges. FCMAT provides fiscal and data management assistance, professional development training, product development and other related school business and data services. FCMAT’s fiscal and management assistance services are used not just to help avert fiscal crisis, but to promote sound financial practices and efficient operations. FCMAT’s data management services are used to help local educational agencies (LEAs) meet state reporting responsibilities, improve data quality, and share information. FCMAT may be requested to provide fiscal crisis or management assistance by a school district, charter school, community college, county office of education, the state Superintendent of Public Instruction, or the Legislature. When a request or assignment is received, FCMAT assembles a study team that works closely with the local education agency to define the scope of work, conduct on-site fieldwork and provide a written report with findings and recommendations to help resolve issues, overcome challenges and plan for the future. Studies by Fiscal Year 90 80 70 60 50 40 30 20 10 0 92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 Yreka Union elementarY School DiStrict seidutS fo rebmuN FCMAT also develops and provides numerous publications, software tools, workshops and professional development opportunities to help local educational agencies operate more effec- tively and fulfill their fiscal oversight and data management responsibilities. The California School Information Services (CSIS) arm of FCMAT assists the California Department of Education with the implementation of the California Longitudinal Pupil Achievement Data System (CALPADS) and also maintains DataGate, the FCMAT/CSIS software LEAs use for CSIS services. FCMAT was created by Assembly Bill 1200 in 1992 to assist LEAs to meet and sustain their financial obligations. Assembly Bill 107 in 1997 charged FCMAT with responsi- bility for CSIS and its statewide data management work. Assembly Bill 1115 in 1999 codified CSIS’ mission. AB 1200 is also a statewide plan for county office of education and school districts to work together locally to improve fiscal procedures and accountability standards. Assembly Bill 2756 (2004) provides specific responsibilities to FCMAT with regard to districts that have received emergency state loans. In January 2006, SB 430 (charter schools) and AB 1366 (community colleges) became law and expanded FCMAT’s services to those types of LEAs. iv ABOUT FCMAT Since 1992, FCMAT has been engaged to perform nearly 850 reviews for LEAs, including school districts, county offices of education, charter schools and community colleges. The Kern County Superintendent of Schools is the administrative agent for FCMAT. The team is led by Joel D. Montero, Chief Executive Officer, with funding derived through appropriations in the state budget and a modest fee schedule for charges to requesting agencies. Fiscal crisis & ManageMent assistance teaM 1 INTRODUCTION Introduction Background The Yreka Union Elementary School District is located in the city of Yreka in Siskiyou County and covers approximately 50 square miles, serving 1014 students at Jackson Street School, Evergreen School and the Yreka Community Day School. The district closed Gold Street School and consolidated classes to its other two campuses for the 2012-13 school year. Most of the Gold Street campus has been leased to other users. Home-to-school transportation for the district’s regular education students is provided by Dole Transportation, a for-profit transportation contractor in Yreka. For the 2011-12 school year, the district reported that it transported 212 students on six bus routes that travelled a total of 35,154 miles. Routes were reduced before the beginning of the 2012-13 school year, but some additional service had to be added back to meet scheduling needs. During FCMAT’s fieldwork near the beginning of the school year, the district was still adjusting its bus routes. Study Guidelines FCMAT visited the district on September 10 and 11, 2012 to conduct interviews, collect data and review documents. This report is the result of those activities and is divided into the following sections: I. Executive Summary II. Financial Analysis III. Safety and Legal Compliance IV. Contract Analysis IV. Comparison with other School Districts V. Transportation Service Options VI. Appendices Yreka Union elementarY School DiStrict 2 INTRODUCTION Study Team The study team was composed of the following members: Julie Auvil, CPA, CGMA Michael Rea* FCMAT Management Analyst Executive Director Bakersfield, CA West County Transportation Agency Santa Rosa, CA Joseph Bjerke James Foley* FCMAT Consultant Assistant Superintendent of Business Coeur d’Alene, ID Kerman Unified School District Kerman, CA John Lotze FCMAT Technical Writer Bakersfield, CA *As members of this study team, these consultants were not representing their respective employers but were working solely as independent contractors for FCMAT. Fiscal crisis & ManageMent assistance teaM 3 EXECUTIVE SUMMARY Executive Summary Financial Analysis Prior to 1977, California fully funded school transportation. The funding was capped in the 1982-83 school year, with only occasional cost of living adjustments (COLA) provided subse- quently. Costs have increased over the past thirty years; however, revenue has remained stagnant. Currently, California provides approximately 35% of school transportation costs statewide. Over the past three school years, the Yreka Union Elementary School District has received more than the statewide average funding for its pupil transportation. The district contracts with Dole Transportation, for its home-to-school transportation services. Some data in the district’s Annual Report of Pupil Transportation (TRAN) submitted to the California Department of Education (CDE) are not accurately reported. The district does not charge fees for pupil transportation and there is no recommendation that begin to do so. Safety and Legal Compliance There is only one state-certified school bus driver instructor in Siskiyou County, who trains the drivers at Dole Transportation. It is essential for the safety and welfare of the district’s students to have more instructors available. The district is in compliance with education code requirements for school bus safety instruction and evacuation drills, and it has a transportation safety plan as required by law; however, the plan needs to be updated and improved. The California Code of Regulations states that bus drivers are responsible for the conduct of pupils riding the bus and encourages school districts to adopt rules and procedures for student behavior on buses. Dole Transportation has created and uses a bus misconduct form; however, the district has not adopted rules, consequences for violations or a hearing process. The CHP Motor Carrier Inspector Division inspects each bus and reviews maintenance records, driver records and drug and alcohol testing records annually, and produces a report known as the Safety Compliance Report/Terminal Record Update, which grades each carrier and terminal. Dole received a rating of “satisfactory,” which is the CHP’s highest grade. Contracts The terms of the district’s contract with Dole Transportation have historically been dictated by the contractor. The district has not put the transportation contract out for public bid, which is in conflict with state’s Public Contract and Education codes. To develop a more competitive process and possibly reduce costs, the district should contact other districts in the area to determine if they are interested in participating in the request for proposal. Dole Transportation’s bus fleet is old and is not in compliance with the California Air Resources Board’s truck and bus rules, which address particulate matter exhaust from diesel engines. The company could face significant sanctions for noncompliance. The district also contracts with the Yreka Union High School District to transport some of its elementary students who live outside the district’s boundaries but who have interdistrict agree- ments. The rate the high school district charges is fair and reasonable and the attendance of the students transported generates considerable revenue limit funding for the district. Thus the district should continue this arrangement. Yreka Union elementarY School DiStrict 4 EXECUTIVE SUMMARY Comparison with Other School Districts The district provided FCMAT with some comparative information regarding other Siskiyou County school districts’ TRAN cost per mile. The district’s costs are the highest in this group, which could lead an untrained observer to believe that the district’s costs are excessive. However, this may not be the case because TRAN data is often flawed because the reporting entity fails to exclude field trips and athletics, fails to separately report special education, or inaccurately reports the number of students or mileage driven. This can make comparisons difficult. FCMAT found four other school districts in the state that operate six routes and have similar annual mileage. Three of those districts had a cost per mile that was greater than that of the Yreka Union Elementary, and one had slightly lower costs. Based on this comparison of unaudited TRAN data, the district’s cost per mile is reasonable. Options to Current Service The district’s has three options for its future transportation services. The first is to put its transportation services out to bid and award the bid by March 2013, before the current contract with Dole Transportation expires on June 30, 2013. This would give a new provider time to prepare and implement the needed changes before the beginning of the school year. There is currently at least one contractor besides Dole Transportation that is interested in securing the district’s business. The second option is for the district to provide its own home-to-school transportation. This would require the district to secure a parking and operations site, arrange for bus fueling and maintenance, hire drivers and purchase buses. FCMAT estimates that this would be more expensive than the current contract if new buses were purchased, though reliable used buses might be available. The third option is for the district to meet with other local school districts to form a cooperative venture, either through a contract with a third-party provider, or through a commitment to operate the system cooperatively under one of the following: a joint powers agreement (JPA); a less-formal cooperative with a lead agency; or a cooperative that jointly contracts with one provider for the service. The cooperative operation option could take many forms and would require the commitment and participation of all interested parties. Fiscal crisis & ManageMent assistance teaM 5 FINANCIAL ANALYSIS Findings and Recommendations Financial Analysis School transportation in California was fully funded until 1977. Under that system, school districts reported their operational expenditures and the state fully reimbursed the costs in the subsequent year. Between 1977 and the 1982-83 school year, California reduced the percentage of reimbursement, eventually capping funding at 80% of the reported expenditures. Since then, the state has occasionally granted a cost of living adjustment (COLA), but not enough to keep pace with increasing costs. In addition, the state began to reduce (or deficit) approved apportion- ments. Deficits were 19.84% in 2009-10, 19.81% in 2010-11, and 19.8325% in 2011-12, and the state expects to fund fiscal year 2012-13 at the 2011-12 funding level. Pursuant to the August 2012 California Department of Education (CDE) certification, the Yreka Union Elementary School District has an approved 2012-13 apportionment of $135,033 for home-to-school trans- portation; however, its deficited apportionment is $108,249. Statewide, the state’s transportation funding pays for approximately 35% of total school trans- portation expenditures. The table below provides a summary of data from the district’s Annual Report of Pupil Transportation (TRAN) submitted to the CDE. Yreka Union Elementary School District TRAN Data 2012-13 2009-10 2010-11 2011-12 Projected Number of Buses 6 6 6 4 Number of Students Transported 240.2 217.6 212.2 Number of Miles Driven 35,154 35,154 35,154 Cost per Mile $6.72 $7.58 $7.58 Cost per Student $983.14 $1,224.60 $1,255.60 Total Approved Expense $236,150.61 $266,473.00 $266,483.33 $200,677.00 Dole Transportation Contract with YUESD $250,803.56 $255,922.00 $255,922.00 $196,473.00 YUHS District Transportation Contract with YUESD $9,613.50 $10,141.25 $9,815.50 $1,000.00 State Revenue $108,240.00 $108,582.00 $110,462.00 $108,249.00 District Contribution $127,911.00 $157,891.00 $154,456.00 $92,428.00 Percentage of District Approved Costs Covered By State Revenue 45.84% 40.75% 41.45% 47.57% The primary purpose of the TRAN data is to report to the state the district’s expenses for pupil transportation to substantiate the revenue apportioned to the district. Although the state will question information that is unusual or far outside the norm, the state reviews the total approved expenditures and compares that to the approved apportionment for the district. This analysis ignores the deficited apportionment. A school district must spend at least as much as its approved apportionment or its apportion- ment will be reduced to the level of its actual expenditures. During recent years in which school districts were given deficited apportionments, some districts reduced their expenditures to the amount of apportionment revenue received, or the deficited apportionment. In these cases the state has reduced the approved apportionment to equal the costs reported, and there is no mecha- Yreka Union elementarY School DiStrict 6 FINANCIAL ANALYSIS nism in state law to increase those amounts in the future. Consequently, it is important for the district not to reduce expenditures below the level of the approved apportionment even though it does not currently receive that level of funding. The financial information in the TRAN is automatically copied to the CDE’s Standardized Account Code Structure (SACS) financial reporting software, and the number of buses, students and miles are entered manually. The district’s TRAN information indicates that it has operated nearly identical bus routes and used the same number of buses from year to year, and that the number of riders has remained fairly constant. For the 2012-13 school year, the district reduced the number of bus routes and the service to some areas of the district. The district contracts with Dole Transportation, located in Yreka, for its home-to-school transportation, and the contract price for the 2012-13 school year has been reduced to reflect the service reductions. The home-to-school transportation miles reported in the district’s TRAN have been identical for the past three school years. The contractor stated that this is because the routes have not changed. This indicates a fundamental misunderstanding by the contractor regarding the requirements of the TRAN. The mileage reported should be the total number of miles actually driven for home-to-school transportation while on the route and driving to and from their terminal (field trips, travel to outside maintenance providers and driver training are excluded). The miles being reported are the miles that would be driven if there was never a deviation from the published route. However, on any given day school buses may need to deviate from the published route and drive additional miles for any number of reasons, including road construction, returning kinder- garten students to school when they are not met by their parents, or a missed turn. Because the cost per mile ratio is critically influenced by the mileage divisor, inaccurate mileage can invalidate comparisons with other school districts’ transportation programs. Dole Transportation provides the district with the number of students transported, which was 212.2 for the 2011-12 TRAN. The route sheets Dole provided to FCMAT listed each child that who was scheduled to ride each route and indicated a total of 200 students. Although the number is close, it is likely that on any given day not every child rode the bus. The TRAN asks for the average number of pupils transported daily one-way, not for the total number of pupils signed up for a route. The expenditures reported for the district’s home-to-school transportation are relatively simple and reflect two contracts: one with Dole Transportation for most of the regular home-to-school transportation; and one with the Yreka Union High School District, which provides some trans- portation to elementary students who live outside of the district’s boundaries but who attend its schools because of interdistrict agreements. These students ride the high school district’s buses (which are also contracted by Dole) and are delivered to and from the elementary schools in town. The high school district establishes a rate annually, monitors the number of riders, and invoices the district monthly for this service. In fiscal year 2009-10, the contract with Dole showed a cost of $250,803.56; however, the TRAN for that year showed a cost of $227, 814.29 for Dole. No reduction in service was reported for that school year; consequently, the expenditures were not reported accurately. Inaccurate reporting of expenditures does not negatively affect the district’s apportionment but can affect comparisons made from year to year and with other school districts. The district receives a higher percentage of transportation revenue than the statewide average of 35% of the total cost to provide transportation services. In fiscal year 2009-10, 2010-11 and 2011-12 state funding equaled 45.84%, 40.74% and 41.45% of the district’s approved Fiscal crisis & ManageMent assistance teaM 7 FINANCIAL ANALYSIS transportation expenditures, respectively. In fiscal year 2012-13, the state funding is projected to cover approximately 47% of the district’s home-to-school transportation expenditures, mainly because of service and contract reductions. Although the district receives a larger percentage of its transportation revenue than the average California district, this revenue reflects what the district reported in the 1982-83 school year when revenue was capped, not its current operational efficiency. In 1992, the California Supreme Court ruled that charging fees for pupil transportation was legal, and some school districts in California charge fees in compliance with Education Code Section 39807.5. Special education students who receive transportation service as required by their Individualized Education Program (IEP), and students who qualify for free or reduced price meals, are exempt. The district reports that approximately 70% of its students qualify for free or reduced price meals. Because of this, it is unlikely that the revenue collected from transportation fees would cover the cost of administering such a program. Recommendations The district should: 1. Accurately report TRAN data by tracking and monitoring the actual mileage and any deviations for all routes daily. 2. Continue providing home-to-school transportation without charging fees. Yreka Union elementarY School DiStrict 8 Fiscal crisis & ManageMent assistance teaM 9 SAFETY AND LEGAL COMPLIANCE Safety and Legal Compliance The requirements for California school bus driver training are listed in Education Code section 40080 and subsequent sections. School bus drivers must receive a minimum of 20 hours of classroom training in all units of the Instructor’s Manual for California’s Bus Diver’s Training Course published by the CDE. In addition, a minimum of 20 hours of behind-the-wheel training is required from the CDE’s Instructor’s Behind-the-Wheel Guide for California’s Bus Divers’ Training Course. School bus drivers must also complete a minimum of 10 hours of in-service training each year to maintain a valid special certificate. Classroom training is required during the last year a special certificate is valid in order to renew it. All testing is performed by the California Department of Motor Vehicles (DMV) through a specialized officer at each California Highway Patrol (CHP) office. Many more than the minimum required classroom and behind-the-wheel training hours are needed to teach all of the units in the referenced manuals. Most school districts provide a minimum of 35 hours of classroom training and at least that many hours of behind-the-wheel training. All driver training records must be kept in compliance with Education Code sections 40082-40089. All training must be given by or at the direction of a state-certified school bus driver instructor; behind-the- wheel training can be given by a delegated behind-the-wheel instructor under the direction of the state-certified instructor. Dole Transportation does not have a state-certified school bus driver instructor on its staff, but contracts with an independent state-certified instructor in Siskiyou County. This individual recently retired from another school district in the county and reported that there are no other state-certified instructors in the area and that he provides the majority of the training for most school bus drivers in the county. Occasionally drivers go outside of the county to attend training. Although there are not a large number of school bus drivers in the county, there would be a great concern if this independent contractor was no longer available. School bus driver training is crucial to any school transportation operation; without regular, mandated training, school districts and contractors can quickly fall out of compliance. Education Code section 39831.5 requires that school bus safety instruction and evacuation drills be performed annually for certain grade levels that ride the bus to and from school. Records of the drills must also be kept., FCMAT observed the evacuation drills in progress and reviewed documentation of the previous year’s drills. Dole Transportation provides this service as a part of its contract with the district and is maintaining compliance, despite the lack of specific contract language regarding this matter. Education Code section 39831.3 requires that a transportation safety plan be in place and present at each school site. This is also articulated in the district’s Administrative Regulation 3543(b). The plan is required to contain proce- dures for school personnel to follow to ensure the safe transport of pupils and can be requested by any officer of the CHP for inspection. The Education Code requires that the plan address all of the following: 1. Determining if pupils require escort pursuant to paragraph (3) of subdivision (c) of Section 22112 of the Vehicle Code. Yreka Union elementarY School DiStrict 10 SAFETY AND LEGAL COMPLIANCE 2. Procedures for all pupils in prekindergarten, kindergarten, and grades 1 to 8, inclusive, to follow as they board and exit the appropriate school bus at each pupil’s school bus stop. 3. Boarding and exiting a school bus at a school or other trip destination. FCMAT requested a copy of the district’s transportation safety plan and received a letter written by Dole Transportation dated August 31, 2012 referencing a plan that was implemented by Dole on January 7, 2002. The document contains the information required by Education Code, but it is not titled Transportation Safety Plan and district officials were uncertain whether a copy of the plan was available at each school site. A sample transportation safety plan is attached as Appendix A. To comply with Title 5 of the California Code of Regulations, Section 14103, most school districts adopt safe riding rules that include a clear, fair and consistent set of consequences for violating the rules and a due process procedure that allows meetings with parents regarding the violation and punishment. The district lacks a policy or administrative regulation regarding student conduct on school buses and has given Dole Transportation almost complete authority and responsibility for student conduct on buses. Drivers unilaterally determine the punishment and report misbehavior through a misconduct form generated by Dole; however, Dole’s general manager must intervene frequently to provide reasonable and consistent consequences for misbehavior. If the punishment reaches the level of suspension, Dole notifies the principal of the student’s school when a suspension occurs. Appendix B contains sample rules, and Appendix C contains a sample bus misconduct report. The California Highway Patrol’s Motor Carrier Safety Division inspects all school buses, main- tenance records, driver records and federal drug and alcohol testing program records annually. The CHP provides a report known as the Safety Compliance Report/Terminal Record Update that grades the motor carrier in the above areas. Dole Transportation has consistently received the CHP’s highest grade, which is “satisfactory”. This indicates compliance with applicable laws and regulations in these specific areas, and should provide the district with assurance that Dole is operating in a safe and legal manner. Recommendations The district should: 1. Ensure that an adequate number of school bus driver instructors are available. 2. Update and adopt a transportation safety plan and provide a copy to each school site. 3. Adopt specific rules of conduct and consequences for noncompliance for student riders. Fiscal crisis & ManageMent assistance teaM 11 CONTRACT ANALYSIS Contract Analysis The district operated its own in-house transportation service until 1977, when it sold its bus fleet to Evans Transportation and began depending on contractors to provide its hone-to-school transportation. The district now uses Dole Transportation for home-to-school and field trip transportation. Dole is a sole proprietorship that was formed when Dole’s owner purchased Evans Transportation in March of 2000. Dole has continued to operate its business in much the same way that Evans Transportation did. In addition to its contract with the district, Dole Transportation also provides approximately five bus routes for the Yreka Union High School District; one bus route for the Montague Elementary School District; and one bus route for the Seiad Elementary School District. Dole also owns and operates four tour buses can be chartered to the general public or used for school district’s field trips. Dole’s owner reported that the charter bus business has been slow during the last few years. The Yreka area has one other transportation contractor who operates one-bus route for the Yreka Union High School District. This route was handed down from this person’s relative who previ- ously drove the route. There is no a spare bus for this route, and Dole Transportation provides maintenance service for this bus as well as for the Siskiyou County Office of Education’s fleet of approximately 6 buses. Inquiries revealed that the district has never put its transportation service out to bid. Section 20111 of the Public Contract Code requires competitive bidding for any non-construction service, materials, supplies or equipment with a purchase price that exceeds $81,000 (effective January 1, 2012 and annually adjusted). In addition, Education Code section 39802 requires that transportation services in excess of $10,000 be formally bid in compliance with Public Contract Code section 20111 unless service is contemplated with a common carrier, municipal transit system or the parent/guardian of the student to be transported. Education Code section 39802 also allows the contract to be awarded to other than the lowest responsible bidder. Dole Transportation and its predecessor, Evans Transportation, have histori- cally written the district’s contract document, determined its terms and set the rate to be charged for regular home-to-school transportation and field trips. Little or no negotiation occurred over contract terms other than pricing. The routes have remained relatively unchanged over the years, and the contract reflects a set annual price that will be invoiced over ten months, starting September 1 of each year. This requires the district to pay for service in advance rather than after the service is provided; the latter method is best practice. Benefits of a set-price transportation contract include the fact that the district does not incur additional charges for routine occurrences that often cause a route to run late or add mileage, such as traffic problems, late students, or the need to return a student to school. The district expressed concerns to Dole Transportation and FCMAT regarding the pricing in its contract with Dole. Historical transportation data indicates that mileage was reduced by almost 10,000 miles for the 2008-09 fiscal year, though it was relatively stable prior to that. In subsequent years, the change in contract amounts and service have been as indicated in the table below. Yreka Union elementarY School DiStrict 12 CONTRACT ANALYSIS Transportation Service Contract Amounts and Changes, 2009-10 through 2012-13 Fiscal Year 2009-10 2010-11 2011-12 2012-13 Contract Cost $250,803.56 $255,922 $255,922 $193,449 Percentage Increase or (Reduction) from prior year (1.86%) 2% 0% (24.41%) Decrease in Mileage or service None Yes Although the 2012-13 contract amount is significantly lower, the lower amount is based on a reduction in service. In addition to the district’s concerns over the total amount of the contract, there have been questions regarding the calculations of the annual increases to the contract. However Dole Transportation is a for-profit business and, whatever the basis for or method of calculating the increases, the district did agree to them. Many school transportation contracts include an automatic annual rate increase based on the consumer price index (CPI) for the area. In most years (except in the recent economic downturn), the CPI generally increases from 2% to 3% annually, with some variations due to geographic area. The time to question a contract increase is when it is presented; however, past district administrators did not study or monitor transportation contracts as much as the current administration. It is unlikely that past decisions can be changed; however, this study seeks to provide options that will benefit the district moving forward. On June 12, 2012, the district entered into a one year renewal of its contract with Dole Transportation. This contract lacks typical language that a district would expect, including but not limited to the following: • Limits on the age of buses used. • Specification of the district’s ability to remove a driver from service (although there is reference that the bus drivers shall continue to be satisfactory to the district). • Specification of requirements for a communication system between the buses and the bus terminal, and district’s ability to monitor those conversations. • Requirements for drivers to wear uniforms or identifying name tags, • A requirement that specific operational reports be provided to the district. • The ability for the district to charge liquidated damages for late or missed bus runs. • A fuel price increase formula (without such a formula, a contractor may price the contract higher to compensate for volatility in fuel prices). A well-executed contract can provide assurances that transportation services will be provided for the long-term at a known cost, and thus make it easier to budget for expenditures over the life of the contract. The contract also does not specifically mention bus routing. Although bus routes remained largely unchanged for many years, during the 2001-12 school year, after the district observed that two routes had low ridership, the district and Dole were able to consolidate bus routes. It is likely that this low ridership had existed for several years, causing the district to expend funds needlessly. It is best practice to have standard contract language that includes the district’s right to route the buses or at a minimum oversee the routing. Reasonable oversight includes occasional Fiscal crisis & ManageMent assistance teaM 13 CONTRACT ANALYSIS counts taken in the morning and afternoon as students board or exit the buses. Comparing these numbers to the passenger capacity of the bus can help reveal low ridership and thus identify routes that may be considered for consolidation. District administrators and representatives from Dole Transportation indicated that the buses transporting students have few empty seats. The district has no board policy that specifies trans- portation non-service zones (commonly known as walking zones or walking distances). Most students on the west side of Yreka are not provided with transportation, except for the shuttle to and from the recently closed Gold Street school site. Other areas of town have historically received transportation service, including the Campbell track, Greenhorn and Shamrock. If the district continues providing transportation through a contract for service, it will need to begin preparing a request for proposal (RFP) that includes contract documents and detailed service requirements, and place the RFP for public bid as soon as possible. In the past, the district had been unable to find another vendor that was interested in providing transportation services; however, at least one transportation contractor other than Dole Transportation is interested in bidding to provide service. The district will need to include a mandatory bidder’s conference in the bidding documents to allow potential contractors the opportunity to question areas of the documents or request clarification. Formal bid opening will need to occur no later than four weeks before the conference, with the contract awarded at the next board of trustees meeting. It would benefit the district to strive to award the bid at the board’s March, 2013 meeting to allow any new contractor the ability to establish service for the following school year. The viability and competitiveness of any contracted school transportation operation is based partly on volume. Thus if the district chooses to put its transportation service out for bid alone, it may be more difficult to attract other contractors or obtain the best possible price. Contacting other school district in the area that receive contracted transportation services and including them on the RFP if they agree to it could create a more competitive bidding process and lower the cost of services for all. Any district considering using competitive bidding should consult with legal counsel experienced in such matters to help draft the RFP and guide it through the process. A sample contract with typical language and requirements is included in Appendix D. Once a transportation contract has been awarded, it would benefit the district to assign one district staff member the responsibility to manage and oversee the contract to ensure compliance with all of its provisions. This would help reduce some of the current frustration with not being able to understand vendor billing formulas and provide both the contractor and the district with a consistent point of contact. A review of the district’s contract and relationship with Dole Transportation revealed three areas of significant concern. The first concern is that the school bus fleet is very old. The district’s list of the four buses used mainly to serve the district includes those listed in the following table. Yreka Union elementarY School DiStrict 14 CONTRACT ANALYSIS Dole Transportation Buses used for District Transportation Bus Number Year, Make and Model Mileage Passenger Capacity 34 1984 IHC, S1800 470,151 72 35 1993 Thomas, Transit 175,625 78 38 1989 Thomas, Transit 229,964 66 53 1983 IHC, S1800 398,444 66 The newest bus used to transport the district’s students is 19 years old and the oldest is 29 years old. FCMAT was unable to obtain a complete list of Dole Transportation’s fleet; however, a visual inspection of the fleet revealed that most buses are quite old and that the newest bus in Dole’s fleet is approximately 10 years old. This indicates that regular capital purchases and renewal of the fleet has not occurred. Although a good preventive maintenance program can keep buses in good repair, parts for older vehicles become difficult to locate and expensive to purchase. In some cases, buses may have to be out of service for weeks waiting for appropriate parts. Dole personnel indicated that the company has a large number of spare buses available in case a bus is placed out of service. The second concern relates to the California Air Resources Board’s (CARB’s) Truck and Bus Rules, which were adopted in December 2008 and were updated and revised in December, 2010 (see Appendix E for a synopsis of these rules). These rules are intended to reduce particulate emissions from diesel engines and require that 33%, 66% and 100% of every school bus fleet be in compliance by January 1, 2012, January 1, 2013 and January 1, 2014, respectively. Compliance requires that the buses be retrofitted with diesel particulate filters (DPF), or that the engine be replaced with a new, compliant engine. Some older bus engines cannot be fit with a DPF and cannot be replaced, so those buses must be replaced with a new bus that meets current particulate emission requirements by 2018. Dole Transportation admits that it is not in compli- ance with these rules and has no plan at present to achieve compliance. Thus the district’s students are subject to the buses’ harmful emissions and particulate exhaust, and Dole could suffer sanctions that may impair its ability to provide any district with service in the future. CARB rules include penalties of up to $1,000 per day per violation for strict liability, and $10,000 per day per violations for negligence and intentional violations. The final concern is that Dole Transportation’s owner reported that he has begun considering retirement. Although there may be individuals interested in purchasing the business, he was not aware of any. Any transition may cause a disruption of service. The service that the district has received from Dole has been good. School administrators and the community view Dole as responsive and service-oriented. Dole’s general manager is knowl- edgeable regarding school transportation and is service oriented. This person is a parent in the community and cares deeply about the quality and safety of the service; however, is neither a certified school bus driver nor a school bus driver instructor. As noted previously, the district also contracts with the local high school district for transporta- tion for students who live outside the district’s boundaries but attend district schools based on an interdistrict agreement. This service is provided only if there are seats available on the high school district’s buses and the high school district’s students receive first priority. The high school district has developed a formula that calculates a rate based on its average cost incurred per student above and beyond the state funding received. Fiscal crisis & ManageMent assistance teaM 15 CONTRACT ANALYSIS FCMAT reviewed the formula and determined that it follows the articulated rationale; however, FCMAT did not verify the calculation or the daily rate. The district receives invoices monthly for this service. For the 2011-12 school year the rate was $67 per month, per student for morning and afternoon service. The cost of this service for the district was approximately $600 per student for a total of $9,815.50 for the 2011-12 school year. The district’s own transportation cost as reported in the 2011-12 TRAN was $1,255.60 per student, per year. The number of elementary school district students transported by the high school district’s buses varies from 13 to 27. The annual cost for the past several years has been approximately $10,000. This is an unusual but creative arrangement: school districts typically do not provide school transportation outside of their district boundaries. However, each of these additional students generates approximately $5,000 in revenue limit funding. Recommendations The district should: 1. Develop contract documents and solicit bids for transportation service if it decides to continue to using a vendor for transportation. 2. Adopt an administrative regulation that specifies criteria for students’ eligi- bility for transportation service. 3. Determine if there are other districts in the area that wish to be included in an RFP for transportation services. 4. Appoint one district staff member to manage and oversee the transportation contract. 5. Continue contracting with the Yreka Union High School District to trans- port students who attend Yreka Union Elementary School District’s schools but reside outside of its boundaries. Yreka Union elementarY School DiStrict 16 Fiscal crisis & ManageMent assistance teaM 17 COMPARISON WITH OTHER SCHOOL DISTRICTS Comparison with Other School Districts The district’s 2010-11 TRAN data for school districts in Siskiyou County indicates that the district has the highest cost per mile of any of the school districts in the area. Although this may give the impression that the contractor is taking advantage of the district, TRAN data is unreli- able at best. As stated earlier, many school districts do not understand how to properly report the data fields in the TRAN. In addition, school districts that provide both home-to-school trans- portation and transportation for severely disabled or orthopedically impaired (SD/OI) special education students do not always correctly separate their costs. Many school districts belong to self-insurance groups that charge property and liability premiums based on average daily attendance (ADA); however, these districts may not report bus insurance costs because they are not easy to identify, and this can slant the TRAN data. As seen above, incorrect reporting of mileage, insurance or number of students can significantly change the cost per mile or cost per student ratios. Although the data used in this comparison has been submitted to the CDE via the district’s TRAN form, FCMAT did not audit the TRAN data. A comparison of the Yreka Union Elementary School District and the Yreka Union High School District reveals a number of differences. The high school district covers a large area with many routes on roads with relatively high speed limits, so it has high mileage but relatively low employee costs because the drivers are not on the clock for long hours. In addition, it has better fuel economy than routes that operate mostly in stop-and-go traffic. The Yreka Union Elementary School District’s routes travel fewer miles but drivers are on the clock just as long as some of the drivers on high school district routes. The elementary school district’s routes are also slower, fuel efficiency is lower, and bus driver labor costs are higher. All of these factors contribute to the elementary school district’s higher cost per mile. These differences are not uncommon. For example, the Shasta Union High School District had a cost per mile of $3.67 during fiscal year 2010-11, while the Shasta Union Elementary School District had a cost per mile of $4.24. A simple cost per mile comparison can be unreliable if one does not know the staffing level, the salary and benefits paid, the relative longevity of staff, and the capital expended on facilities, buses and other items. For fiscal years 2009-10 and 2010-11, the statewide average cost per mile for home-to-school transportation were $6.04 and $6.15, respectively. For negotiations with certificated employee bargaining groups, school districts often use comparison data from districts that are similar in ADA or enrollment, number of schools, demo- graphic profile, or geographic region. In school transportation, the most meaningful comparative information when reviewing cost per mile is the number of routes that transport students and the number of miles travelled. However, without knowing more about each district’s operation, it can be challenging to draw conclusions from this data. The following table contains TRAN data from the California Department of Education (CDE) for fiscal year 2010-11 for California school districts that operated six route buses, along with each district’s mileage and cost per mile. Yreka Union elementarY School DiStrict 18 COMPARISON WITH OTHER SCHOOL DISTRICTS 2010-11 TRAN Data District Number of Buses Annual Mileage Cost Per Mile 6 95,628 $4.72 Acton-Agua Dulce 6 85,777 $6.44 Alpine Union Elementary 6 102,744 $5.07 Aromas-San Juan Unified 6 55,403 $8.56 Cabrillo Unified 6 60,453 $4.33 Calipatria Unified 6 54,056 $6.90 Coast Unified 6 36,416 $9.19 Dixie Elementary 6 85,500 $3.72 Duarte Unified 6 57,795 $7.73 Enterprise Elementary 6 69,030 $6.34 Evergreen Union Elementary 6 64,754 $4.77 Fortuna Union High 6 34,766 $7.86 Hawthorne Elementary 6 100,578 $4.52 Irvine Unified 6 14,648 $8.56 Jefferson Elementary 6 76,226 $5.81 Kelseyville Unified 6 46,215 $3.62 Kingsburg Joint Union High 6 69,258 $10.21 Lakeside Union Elementary 6 85,059 $6.95 Lancaster Elementary 6 60,346 $2.62 LeGrand Union High 6 32,822 $10.37 Live Oak Unified 6 54,838 $6.12 Lone Pine Unified 6 42,809 $4.37 Lost Hills Union Elementary 6 58,934 $4.95 Middletown Unified 6 109,620 $3.38 Modoc Joint Unified 6 42,103 $9.32 Moreland Elementary 6 62,220 $5.98 Nevada City Elementary 6 99,587 $3.60 Newman-Crows Landing Unif. 6 71,181 $3.51 Nuview Union Elementary 6 42,099 $4.28 Palo Verde Elementary 6 52,045 $6.62 Pixley Union Elementary 6 42,890 $8.30 Redondo Beach Unified 6 71,310 $3.83 San Bruno Park Elementary 6 51,859 $10.02 San Lorenzo Unified 6 44,229 $6.52 Santa Rita Union Elementary 6 40,511 $9.99 Savanna Elementary 6 35,836 $6.90 Sonora Elementary 6 74,174 $4.03 Spreckles Union Elementary 6 60,217 $4.23 Templeton Unified 6 51,032 $5.16 Vallecito Union Elementary 6 44,278 $7.10 Westside Elementary 6 42,803 $6.87 Woodlake Union Elementary 6 42,803 $9.34 Woodlake Union High Fiscal crisis & ManageMent assistance teaM 19 COMPARISON WITH OTHER SCHOOL DISTRICTS Four school districts in the above table had mileage similar to that of the Yreka Elementary Union School District.: • Dixie Elementary School District, which operated at a cost of $9.19 per mile/ • Hawthorne Elementary School District, which operated at a cost of $7.86 per mile. • Live Oak Unified, which operated at a cost of $10.37 per mile. • Sonora Elementary School District, which operated at a cost per mile of $6.90 per mile. The district’s cost per mile of $7.58 reported in its 2010-11 TRAN compares favorably with the costs of the four districts that most closely match its number of routes and mileage for the 2010-11 school year; only one of the four districts listed above had a lower cost per mile. Yreka Union elementarY School DiStrict 20 Fiscal crisis & ManageMent assistance teaM 21 TRANSPORTATION SERVICE OPTIONS Transportation Service Options The district has three broad options for how to continue providing transportation for its students. Continue Contracting Continuing to contract for transportation service would require the least work. This would involve preparing an RFP and contract documents as discussed earlier, as well as advertising the bid, scheduling a mandatory bidder’s conference, and awarding the bid by approximately March 2013. If a new provider is selected, the provider would need time to determine a parking loca- tion, arrange for maintenance and fuel service, and hire employees. FCMAT has received the name of a nationwide school transportation contractor that would like to be included in the district’s next bidding for its transportation services. FCMAT will provide the district with this contractor’s name and contact information for their use in the RFP process. Because the district is close to the Oregon border, some bidders may come from Oregon. California and Oregon have different rules for driver certification and bus equipment and certifi- cation. Any Oregon contractor would have to ensure that its drivers and buses used are certified for operation in California. In a similar FCMAT study at a school district in southern California that had service provided by an outside contractor, the contractor charged $317.08 for a five-hour-per-day, per route base rate. This contractor parked at the district’s facility and used the district’s offices and garage. In addi- tion, the district paid for the fuel. Although it is difficult to compare prices when conditions are not identical, if the district used this rate for its four routes, its annual cost would be $228,297. Providing its Own Transportation Service Another option is for the district to provide its own transportation services. This alternative would create an additional level of supervision and concern for an already small district admin- istrative team. The most logical supervisor would be the maintenance supervisor; however, it is unknown if this person has any transportation department experience, and they may require additional training in order to assume the duties required. The district would need to decide where to park their bus fleet. With a small fleet, it would be cost prohibitive for the district to build a transportation facility either on district property or new property it purchases. The district suggested that buses could be parked at the closed Gold Street Elementary School site; however, the school site is in a residential neighborhood and is not suited to bus parking and operations. The noise and exhaust would be disruptive to neighbors, and the district would need to obtain permits for industrial waste and storm water runoff. The state has strict rules regarding dirt, oil and grease that could potentially flow into the storm drain system. A release of fuel, oil, coolant, dirt and grime from a bus or soap from bus washing that travels into the local storm drains could have significant ecological impact on the local streams into which they flow. It would be best for the district to explore other industrial settings that already have permits for such uses and for vehicle parking. Several other options for bus facilities are available, including the county road maintenance yard, the city corporation yard and a CalTrans yard, which are all located in Yreka. In other parts of California, school districts are allowed to park their buses in such yards. The county road maintenance yard is the most modern facility, and it already maintains the county’s public transit buses. It is spacious, has areas for fueling buses, likely has the appropriate bus washing facilities (although FCMAT did not observe washing during fieldwork), and may be interested in Yreka Union elementarY School DiStrict 22 TRANSPORTATION SERVICE OPTIONS performing bus maintenance. The district would need to contact the county, the city or CalTrans to determine their interest and the cost of each option. Other possible options include local trucking or truck maintenance companies such as Onarheim Truck Repair. The district’s transportation operation is too small to justify the cost of a full-time mechanic, so the district would need to secure a truck maintenance shop that would be willing to maintain school buses. Not all truck maintenance shops are willing to take on this work because school buses are the most highly regulated vehicles in California and require specific and regular preven- tive maintenance inspection and repairs. Many shops also do not want the liability associated with maintaining school buses. Any company that maintains the district’s buses will need to clearly understand the requirements in Title 13 of the California Code of Regulations, particu- larly Section 1232. A truck maintenance shop could contact the CHP Motor Carrier Inspection Division to have a representative explain the requirements for school bus maintenance. The district would also need to secure a location for fuel purchases. Currently, Dole Transportation uses a Pacific Pride cardlock station in town. Cardlock stations are typically available 24 hours a day, seven days a week. They are unmanned and the driver needs a card that identifies the bus and/or driver and the owner of the vehicle, which is then swiped in the card reader. The district would then receive a statement that includes information such as when the bus was fueled, the quantity of fuel and the price. Cardlock locations are usually able to provide school districts with invoices that are adjusted to exclude federal and state excise taxes for diesel fuel, from which school districts are exempted. The district would be required to acquire an exempt bus operations permit from the State Board of Equalization to obtain the excise tax exemptions. The district would also need a location to wash the buses that has an approved sump or clarifier, assuming such facilities are not available at the parking location. Sometimes, regular car washes have large bays that can accommodate trucks or buses. Buses need to be washed over an approved sump or clarifier system, and should never be washed at a location where the soap, water and grime can flow into a storm drain. The table below provides a conservative estimate of the cost of implementing a district-operated pupil transportation system for the existing four routes for fiscal year 2013-14. Estimated Cost for the District to Operate its Own Pupil Transportation 2013-14 Revenues State Revenues $108,249.00 Total Revenues $108,249.00 Expenditures Classified Salaries $60,300.00 Employee Benefits $38,714.30 Books and Supplies $24,450.00 Services, Other Operating Expenditures $36,000.00 Capital Outlay $97,000.00 Indirect Costs $16,718.30 Fiscal crisis & ManageMent assistance teaM 23 TRANSPORTATION SERVICE OPTIONS Total Expenditures $256,464.30 Excess/(Deficiency) of Revenue/Expenditures $(148,215.30) General Fund Contribution Required $148,215.30 Following is an explanations of how the various costs in the table were estimated. Revenues FCMAT assumed the same level of funding that will be received in fiscal year 2012-13. Salaries and Benefits • The lead driver position would drive a regular route, arrange for coverage when another driver is ill, maintain the bus routes, answer parent and community calls, assist with student discipline issues, and schedule bus maintenance. This position is calculated at five hours per day for 11 months, or 210 days. It is estimated that the salary for this position would be set at $18 per hour or $18,900 per year. With statutory benefits and the health and welfare cap set by the classified unit’s collective bargaining agreement, the total cost for this position would be $30,570.36. • The three regular bus drivers would be responsible to drive regular routes and perform the necessary check of their vehicles before departure. Their rate is estimated at $15 per hour and they would work four hours per day, 200 days per year (including holidays). Days in addition to school days and paid holidays would be used for activities that incur additional costs such as driver training and other unforeseen additional time. With statutory benefits and the health and welfare cap set by the collective bargaining agreement with the classified employee bargaining unit, the total cost for these three positions would be $61,728.12. For all lead and regular driver positions, FCMAT used the district’s 2012-13 rates for all statutory benefits, and the estimates in this report do not include any increases or decreases in those rates for fiscal year 2013-14. The calculation also does not include payment of vacation time at the end of each fiscal year because the agreement with the classified employee bargaining unit only provides for payment upon separation of service. • FCMAT estimates that substitute drivers would be required for approximately 15% of the days the regular bus drivers work, or 30 days per year. The estimated rate for substitutes is $15 per hour, and they would work the four hours assigned to the regular drivers. • This would result in a salary expense of $5,400 and a total expense of $6,715.82 when statutory benefits are included. No amount is included for district-paid health and welfare benefits because substitute employees are not normally entitled to them. FCMAT used the district’s 2012-13 rates for all statutory benefits and did not include any increases or decreases in those rates for fiscal year 2013-14. • Amounts for administrative oversight have not been included in FCMAT’s estimate because these are not known and at this time it is not possible to quantify the number of hours needed. Yreka Union elementarY School DiStrict 24 TRANSPORTATION SERVICE OPTIONS • Amounts for outings such as for sports or field trips have also not been included in the estimate above because they are not considered home-to-school transportation costs. Books and Supplies • Fuel is estimated at $4.50 per gallon, assuming 37,000 miles driven and seven miles per gallon for the district’s new buses. • The cost of uniform purchase and/or rental would depend on negotiations with the district’s classified employee bargaining unit; however, purchasing uniforms is the more cost efficient option. Consequently, FCMAT’s estimate assumes that the district will purchase five shirts at $18 each and one jacket at $60 for each employee, all embroidered with the district’s logo, and that employees will be responsible for laundering their shirts and jacket. Shoes and pants would be provided by the employees. Services, Other Operating Expenditures • Bus parking is estimated at $50 per bus, per month, assuming a reasonable parking fee being charged by an existing truck yard. • The district will need to secure the services of a state-certified school bus driver instructor. It would be ideal if the lead driver was also an instructor; however, the estimate assumes that this is not the case and that the district will use an independent contractor at an estimated cost of $50 per hour for 70 hours of service. • The cost of insurance is based on information received from the district. • Bus maintenance is estimated at $25,000 per year. This may be considered slightly high for new bus maintenance; however, it is a reasonable estimate of what a commercial truck shop may charge. Although new buses will initially be under warranty, not all repairs will be covered by warranty. As buses age, the cost of maintenance increases and will likely reach $40,000 per year or more for the fleet of five buses. Capital Outlay • The district would need to purchase five buses: four for existing routes and one spare bus. This would enable the district to continue providing full service even if a bus breaks down or is otherwise out of service This would also enable the district to have a bus available for field trips that coincide with the normal route times. The estimate provided above is for four new, conventional 72-passenger buses at a cost of approximately $123,500 each and one new coach type 84-passenger bus at a cost of approximately $165,000. The estimate assumes a seven-year lease purchase with financing at 3%. After seven years the lease-purchase costs would end; however, bus maintenance costs would increase as buses age and warranties expire. Older used buses may be available for a much lower price; however, they are less reliable and would require more maintenance. Therefore, FCMAT assumed that the district would arrange for a lease purchase of new buses. Indirect Costs • These were calculated using the district’s 2012-13 CDE-approved rate of 6.57%. The district would also need to develop job descriptions for the lead driver and other bus drivers and place these positions on a salary schedule. Both of these actions are subject to collective bargaining. The collective bargaining agreement with classified employees would also likely need Fiscal crisis & ManageMent assistance teaM 25 TRANSPORTATION SERVICE OPTIONS to be revised to include clauses specific to bus drivers, such as route bidding, field trips, uniforms, and other items. The district would need to take into account the cost of these negotiations with its classified employee bargaining unit. However, these costs are not included in the cost analysis above because they would be incurred in the fiscal year before a transportation system is implemented. After a district begins providing its own home-to-school transportation service, moving back to contracted service becomes much more complicated because of the passage of Senate Bill (SB) 1419, which was made into law (Education Code section 45103.1) on January 1, 2002. This bill was designed to protect classified employees and requires that a cost savings be shown in order to move personal contracts for services from classified school employees to outside vendors. Although the code section is not specific about the types of service can be considered personal contracts, collective bargaining associations monitor school transportation closely, and FCMAT is not aware of any school district in California that has been able to move their pupil transporta- tion service to an outside vendor since this law was enacted. It would cost the district approximately $60,000 more in the first year to provide its own trans- portation program than to use Dole Transportation. Assuming costs for both options would rise based solely on the prior year’s CPI, the difference would increase to approximately $68,000 by 2017-18 and could be exacerbated if the percentage between steps in the district’s salary sched- ules exceed the CPI. Only when the district is able to retire its long-term debt on the purchase of the buses would there be a reversal of this trend; however, the amount would be mitigated to some degree by increased repair costs. The state’s funding of home-to-school transportation has been precarious and subject to deficit factors, and it is unknown how it will be affected in future budgets. This becomes even more uncertain because the state is now considering a weighted student average funding formula. The calculations used in this report are based on today’s economic conditions and do not take into consideration circumstances that may cause increases, or decreases in either funding or expendi- tures. Based on the estimate above, comparisons in the contract with Dole Transportation, and the estimated cost of continued contracting for service provided earlier, it would not be more cost- effective for the district to operate its own transportation program. Cooperating With Other School Districts Dole currently provides transportation services to four local school districts and another contractor provides one additional route for the high school district. Other nearby school districts operate one or more buses, and the Siskiyou County Office of Education operates approximately six special education, van-type buses. Although it would be a longer process, districts in the county could initiate a discussion to form a cooperative arrangement. This arrangement could take a number of forms: 1. A joint powers agreement (JPA), which is a separate public agency that serves its member school districts either by operating its own buses or contracting for service. 2. An informal or formal cooperative that operates its own buses with one of the school districts acting as the lead agency. 3. A cooperative of school districts that contract for service. Yreka Union elementarY School DiStrict 26 TRANSPORTATION SERVICE OPTIONS A larger organization would benefit all of the districts with more professional and stable supervi- sion, driver training and maintenance. Of the three options above, the formation of a JPA would be the longest process because it would involve determining other interested districts, performing a feasibility study and determining how that study would be financed. This can take two or more years, with the study taking a first year, determining whether a JPA is necessary and forming the JPA taking the next year, and operations beginning the third year. An excellent resource for analyzing such an agreement is available on the California Association of School Business Officials’ website at http://www.casbo. org/storeindex.cfm?findprimarycategory=1735&findsecondarycategory=876 These options should be considered before the district implements its own transportation program because the formation of a JPA has been viewed by collective bargaining units as a contract arrangement which then invokes the requirements of Education Code section 45103.1. Recommendation The district should: 1. Consider the options for providing school transportation service through the formation of a Joint Powers Agreement with other local school districts before determining to operate its own transportation program. Fiscal crisis & ManageMent assistance teaM 2277 APPENDDRICAEFST Appendices Appendix A Sample Transportation Safety Plan Appendix B Sample Bus Rules Appendix C Sample Bus Misconduct Report Appendix D Sample Transportation Services Contract Appendix E California Air Resources Board Truck and Bus Rules Appendix F Study Agreement Yreka Union elementarY School DiStrict 2288 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 2299 APPENDDRICAEFST Appendix A Sample Transportation Safety Plan Yreka Union elementarY School DiStrict 3300 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 3311 APPENDDRICAEFST Yreka Union elementarY School DiStrict 3322 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 3333 APPENDDRICAEFST Yreka Union elementarY School DiStrict 3344 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 3355 APPENDDRICAEFST Appendix B Sample Bus Rules Yreka Union elementarY School DiStrict 3366 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 3377 APPENDDRICAEFST Yreka Union elementarY School DiStrict 3388 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 3399 APPENDDRICAEFST Appendix C Sample Bus Misconduct Report Yreka Union elementarY School DiStrict 4400 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 4411 APPENDDRICAEFST Yreka Union elementarY School DiStrict 4422 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 4433 APPENDDRICAEFST Appendix D Sample Transportation Services Contract Yreka Union elementarY School DiStrict 4444 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 4455 APPENDDRICAEFST Yreka Union elementarY School DiStrict 4466 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 4477 APPENDDRICAEFST Yreka Union elementarY School DiStrict 4488 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 4499 APPENDDRICAEFST Yreka Union elementarY School DiStrict 5500 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 5511 APPENDDRICAEFST Yreka Union elementarY School DiStrict 5522 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 5533 APPENDDRICAEFST Yreka Union elementarY School DiStrict 5544 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 5555 APPENDDRICAEFST Yreka Union elementarY School DiStrict 5566 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 5577 APPENDDRICAEFST Yreka Union elementarY School DiStrict 5588 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 5599 APPENDDRICAEFST Yreka Union elementarY School DiStrict 6600 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 6611 APPENDDRICAEFST Yreka Union elementarY School DiStrict 6622 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 6633 APPENDDRICAEFST Yreka Union elementarY School DiStrict 6644 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 6655 APPENDDRICAEFST Yreka Union elementarY School DiStrict 6666 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 6677 APPENDDRICAEFST Yreka Union elementarY School DiStrict 6688 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 6699 APPENDDRICAEFST Yreka Union elementarY School DiStrict 7700 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 7711 APPENDDRICAEFST Yreka Union elementarY School DiStrict 7722 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 7733 APPENDDRICAEFST Yreka Union elementarY School DiStrict 7744 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 7755 APPENDDRICAEFST Yreka Union elementarY School DiStrict 7766 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 7777 APPENDDRICAEFST Yreka Union elementarY School DiStrict 7788 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 7799 APPENDDRICAEFST Yreka Union elementarY School DiStrict 8800 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 8811 APPENDDRICAEFST Yreka Union elementarY School DiStrict 8822 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 8833 APPENDDRICAEFST Yreka Union elementarY School DiStrict 8844 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 8855 APPENDDRICAEFST Yreka Union elementarY School DiStrict 8866 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 8877 APPENDDRICAEFST Yreka Union elementarY School DiStrict 8888 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 8899 APPENDDRICAEFST Yreka Union elementarY School DiStrict 9900 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 9911 APPENDDRICAEFST Appendix E California Air Resources Board Truck and Bus Rules Yreka Union elementarY School DiStrict 9922 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 9933 APPENDDRICAEFST Yreka Union elementarY School DiStrict 9944 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 9955 APPENDDRICAEFST Appendix F Study Agreement Yreka Union elementarY School DiStrict 9966 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 9977 APPENDDRICAEFST Yreka Union elementarY School DiStrict 9988 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 9999 APPENDDRICAEFST Yreka Union elementarY School DiStrict 110000 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 110011 APPENDDRICAEFST Yreka Union elementarY School DiStrict 110022 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM